The Room Phayathai will open for booking on August 18, the Room Sukhumvit 38 on August 25, according to a company statement yesterday.

He added that all the investments were related to its core business of building residential units for sales.

For example, the investment in Standard International LLC, which owns The Standard Hotel and One Night app, was prompted by the fact that the company could apply the know-how in hospitality management to the after-sales services at its properties. The app could also be a part of its new business model.

The share acquisitions in JustGroup Holding Pte Ltd which manages co-working space and Farmshelf Co Ltd, a designer of indoor spaces, would pave the way to the interior arrangments of its residential projects, especially for co-working space and green design of a condominium.

Through its subsidiary Siri Ventures, the company acquired a Bt15 million stake in Semtive, a US startup developer of wind turbines that could be set up at its residential properties as a source of renewable energy.

We are interested in tapping into the products of innovative companies to boost the value of our projects, Srettha said.

Besides collaborations with promising players in their fields, the company also invests in support of their activities. This is a win-win situation as in the case of Semtive. It helped get their products out of the lab while we stand to benefit from the innovation, he said.

Jirapat Janjerdsak,chief technology officer of Siri Ventures, said the venture capital company recently hosted a panel discussion with its globally-renowned partners, such as Plug and Play and SOSA, on the latest development of Prop Tech including Block Chain, AR/VR, Big Data, AI and ML as well as Voice Assistant and mobility and Fractional Property Investment.

The discussions also dwelled on the challenging task of applying the right strategies for Thai startups to succeed in the global market. Views of the panellists on the different strategies for each startup group would prove to be beneficial to the players in attendance.

Siri Ventures’ vision is to strengthen the startup ecosystem in Thailand as well as providing support to Thai Prop Tech startups to achieve global success. And through our partnerships with Plug and Play and SOSA, we are committed to continue our research and development in innovations for a ‘better living’, adding value to our company while achieving Sansiri’s mission of ‘Complete Your Living Experience’, Jirapat said.

Digital disruption has steered property executives to Big Data in their decision-making process in terms of a project’s location, design, functions, construction raw materials, among others.

This is the right approach to meet the diverse demands of our customers from different generations, said Sansiri Plc’s president Srettha Thavisin at an interview with The Nation recently.

New technologies are streamlining the operations of most industries and the property sector has seen its biggest change in my 30 years of involvement, he said.

“Previously, the decision on land acquisition for a residential project was based on the location’s market potential and (my own lifestyle). That process has been replaced by data research,” Srettha explained.

Big Data now plays a central role in the final say on all projects – from condominiums, townhouses to single detached house, regardless of my beliefs and preferences, he added.

Citing Line Sathorn as an example, Srettha said despite his disagreement with the project’s location, it was introduced to the market after positive findings by our research team on the demand for condominium units in the area. The project was sold out shortly after its presentation.

Data research also contributes to the right design of a residential project. Srettha said before the launch of Baan Sansiri Pattanakarn, he was shown seven designs of single-detached houses based on data research, but not all to his liking.

“After discussions with the research team, a market survey launched found positive responses from our potential customers. The single-detached house project, priced at over Bt60 million per unit, was fully booked in presales last month,” he said.

The company collaborates with commercial banks and internet providers in developing its management and marketing strategies covering all customer segments.

On marketing with Big Data, he said the company would be notified when a potential customer has visited a particular project on our web site more than three times in a month. The system would then identify the individual. The marketing team could wait for his call/visit or contact the person directly to provide relevant service and information.

With approval of the potential client, the company would provide his personal data to a bank in order to prepare a suitable financial package.

“Big data helps boost the property sector through the drastic changes to our operations,” Srettha said.

He said the demands of homebuyers these days vary from a luxurious residence to a home in a natural environment and the green concept.

Provided with a summary of the various demands from Big Data, the company could then come up with tailor-made designs to meet their demands.

“Location, design, and after-sale service are no longer the criteria for a successful project. With the switch of focus on added-value services, they have become basic requirements for homebuyers.

“We will be a residential service provider and the company is co-operating with business partners towards that goal,” Srettha said.

“We cannot invest in the provision of all services. The company has teamed up with innovative partners to provide smart products and services to our customers. This is the way forward and the company has expanded investments in several related businesses since last year,” he said.

“Our business objective will always be the benefits of shareholders, customers, staff, and the society. Our investments in several ventures and the new business model will drive growth in the long term,” he said.

Also, Sansiri would like to remain the top brand in the mind of homebuyers, he concluded.

It plans to launch seven residential projects this year, of which two were launched in the first half.

The company expects Bt3.5 billion in total revenue at the end of this year, he said.

A survey by The Nation finds that 25 listed and non-listed property companies, from a total of over 100 in the country, have planned to launch more than 225 projects, worth up to Bt355.7 billion, in the last two quarters of the year in a bid to reach their year-end revenue targets via pre-sales.

“We plan to launch two condominium projects worth Bt3.6 billion on Sukhumvit 64 and Sukhumvit 71, having witnessed the strong demand for residential units located close to the mass transit network,” said Ausana Mahagitsiri, chief executive officer of The Nest Property Co Ltd.

She added that residential units in the central business district of Bangkok, especially on Sukhumvit Road, are in high demand among both local and foreign buyers, especially those from China, Hong Kong and Singapore.

Vitttakarn Chandavimol, chief business group officer/condominium of AP(Thailand) plc, said the company recorded Bt14.64 billion in pre-sales in the first five months, about 44 per cent of its 2018 target of Bt33.5 billion, thanks to the country’s economic recovery and strong demand for residential units priced over Bt3 million each.

AP (Thailand) has planned to launch 35 projects worth a total of Bt54.38 billion in the following months, including 15 single-detached house developments worth a total of Bt18.6 billion and 17 townhouse projects worth Bt15.38 billion. The other three will be condominiums ,to be developed by a joint venture company with its Japanese partner Jisho Residence, a subsidiary of Mitsubishi Estate Group, Vittakarn said.

“We have raised our launch target from 34 projects worth Bt49 billion to 43 projects worth Bt64.75 billion this year after our robust performance in the single-detached and townhouse markets in the first quarter,” Vittakarn said.

LPN Development Plc, the market leader in condominium projects priced at under Bt2 million per unit, has also turned its business focus to single-detached houses,townhouses and condominums priced over Bt3 million per unit.

“We are entering the middle and upper income markets with the launches of seven residential projects worth a total of Bt20 billion in the second half. Projects in the pipeline include the Bt3.2 billion Baan 365 by LPN Rama 3, to be offered at a starting price of Bt18 million per unit. The luxury residential project was launched earlier this month.

The change in our business strategy was mainly caused by the increasing costs of property development in Bangkok with the rises in land prices and the minimum daily wage, said LPN Development Plc’s chief executive officer and managing director Opas Sripayak. Other factors, beside the need for higher revenue, included the limited land supply in the city and the difficulties low-income buyers face in obtaining a mortgage loan, he added.

Opas said the 5-per cent increase in minimum daily wage will impact the property sector as labour cost accounts for 25 per cent of a project’s construction outlay. Land prices have also risen by more than 10 per cent this year compared with last year’s, following the government’s planned infrastructure projects and the new mass transit routes currently under construction.

The combined impact of higher wage and land prices will lead to a hike in residential unit prices by 5-10 per cent this year, depending on the location, Opas added.

A January 2 announcement of the Treasury Department of the Finance Ministry noted that land prices nationwide were rising by double digits, especially in the central business districts of Bangkok.

For example, land on Silom Road showed the highest appraisal value at Bt1 million per square wah, up 15 per cent from its price of Bt850,000 per square wah four years ago. Ploenchit was second highest, having risen to Bt900,000 per square wah, up 12.5 per cent from its price of Bt800,000 per square wah four years ago while the price on Sathorn Road was Bt750,000 per square wah, up 15.3 per cent from Bt650,000 per square wah four year ago.

Meanwhile, the recent sale of a 25 rai (4 hectares) plot on Wireless Road, formerly part of the UK embassy grounds, topped out at Bt1.86 million per square wah. Central Group, in partnership with Hongkong Land, acquired the property to develop a mixed-use project. Its price has risen by 95.78 per cent from the 2007 level when the Central Group acquired a nine-rai (1.44hectare) slice of the UK embassy site with an opening bid of Bt950,000 per square wah.

A research by CBRE shows that land prices in the Central Business District of Bangkok have surged by more than 1,000 per cent in three decades.

Two landmark transactions in the late 1980s were the acquisition of an 8-rai (3.17-acre) site on Sathorn by the original developer of the Empire Tower for around Bt125,000 per square wah, followed by the purchase of a 8.5-acre site on Wireless Road, which was then the residence of Standard Chartered Bank’s general manager, by the M Thai Group for around Bt250,000 per square wah. The All Seasons Place has since been developed on the site.

The latest big sale in Sathorn was the 8-rai site of the Australian Embassy for Bt1.45 million per square wah in 2017. In Lumpini, SC Asset paid Bt3.1 million per square wah for an 880-square-wah site on Soi Lang Suan. The largest land sale in terms of value remains that of the 23-rai British Embassy site in 2018 to the Central Group/Hongkong Land joint venture.

CBRE expects that central Bangkok will continue to be the most preferred location for high-end hotels, offices, retail centres, residences and other types of buildings such as hospitals. Bangkok will have a clearly defined city centre with extended developments along the mass transit routes concentrated in clusters around the mass transit stations.

Fund-raising

To meet investment costs, most developers will continue the issuances of debentures and other debt instruments in the second-half of the year.

According to The Nation survey, 12 listed property firms – Land and Houses Plc, Sansiri Plc, Pruksa Holding Plc, Golden Land Property Plc, Ananda Development Plc, Supalai Plc, Origin Property Plc, AP (Thailand) Plc, Raimon Land Plc, Sammakorn Plc, Sena Development Plc, and Lalin Property Plc have announced their investment budgets totalling upto Bt99.04 billion to acquire land for residential projects this year.

Over half of their budgets will come from company cashflow with the balance to be met by bond issuances and bank loans. Close to Bt5 billion in debenture issuances are planned for the last two quarters of the year.

Land & Houses Plc plans to issue debentures worth a total of Bt14 billion this year, while Sansiri Plc has issued Bt4 billion in debentures. Pruksa Holding Plc is planning to raise Bt5 billion through debenture issuances.

“We are confident that the property market will see strong growth of 5-10 per cent this year in line with the country’s estimated economic growth of 4 to 4.5 per cent, given the improvement in the export and tourism sectors following the global economic recovery,” said Naporn Sunthrnchitcharoen, Land and Houses’ chairman of the board of directors.

This is the first time the company has launched a luxury low-rise residential project at prices of more than Bt10 million per unit, he said.

The successful sales to date show there is still strong demand for luxury residences, he added.

Topping the list is “One Bangkok,” a Bt120-billion mixed-use project of office buildings, a luxury hotel, residential units and retail outlets on a 104-rai (16.6-hectare) plot on Rama IV road, leased from the Crown Property Bureau (CPB). Construction has started and scheduled for completion in 2025.

“Samyan Mitrtown,” to be developed by subsidiaries Golden Land Property Development Plc and Kasemsubbhakdi Co Ltd, is another mixed-use complex on the list. The Bt8.5-billion project will be completed by the end of next year.

The group will also invest Bt6 billion in the renovation of Queen Sirikij National Convention Centre, having renewed the 50-year lease with the government.

Meanwhile, a subsidiary of TCC Assets won a bid for a 35-rai plot, located close to the Queen Sirikit National Convention Centre and owned by the Crown Property Bureau, within the Thepprathan community in Klong Toei.

The site was acquired in 2014 under a 30-year lease, renewable for another 30 years. The contract also stipulates a grace period of nine years on development.

PARQ, a mixed-use project housing a hotel, retail outlets and office buildings is being developed on the plot at an investment cost of Bt20 billion. Located on the opposite side of the TCC’s FYI Centre on Rama IV Ratchadaphisek Road, it has 320,000 square metres in total space.

Construction of these projects will be completed by 2025.

The group’s property firms, including Univentures Plc, Golden Land Property Development Plc, are currently active in the development of office, hotel, and retail projects around Rama IV road, worth more than Bt50 billion.

The FYI office, a Bt5-billion development, was completed and opened for occupations in the last quarter of 2017. Others include Athenee Tower on Wireless road, off Rama IV road, as well as 208 Wireless, Park Ventures, Golden Land Tower, and Empire Tower on Sathorn road.

TCC chief executive officer Panote Sirivadhanabhakdi said the group is expanding its investments in new projects on Rama IV road and its surrounding areas, seeing the potential of a new landmark in Bangkok.

“Our vision is to create an area, an integral part of the city that people like to spend time in. Once completed, it will be a new landmark in Bangkok to enhance the image of Thailand on the world stage,” Panote said.

Univentures Plc has set an investment budget of Bt16 billion for land purchases and development of residential and office buildings in Bangkok, the company’s president Worawat Srisa-an said.

TCC Land Asset World has prepared a 2018-2020 investment budget of Bt19 billion for the development of shopping centres in Bangkok, said Napat Charoenkul, the company managing director/retail.

Another Bt6 billion will be invested in expanding its shopping centre, Asiatique the Riverfront Charoen Kung, on a 20-rai (3.2 hectares) plot, with completion scheduled for 2020.

A Bt4.5-billion budget was set for the development of shopping centres under the Gateway brand, including Bt2.5 billion allocated for a project in Bang Sue and Bt2 billion for another in Thon Buri. Both will open next year, Napat said.

TCC Land Asset World also plans to invest Bt3.5 billion in developing its market places, under the Tawanna Market brand, in three locations – Bang Plee, Rama II and Thon Buri – during 2018 and 2019.

The company will renovate its shopping centres, Pantip and Gateway Ekamai, Napat added.

According to a Nation survey, the stretch on Rama IV Road between Lumpini Park and Klong Toei is witnessing a construction boom of both residential and commercial buildings.

TCC Assets, the property arm of beverage tycoon Charoen Sirivadhanabhakdi, has set an investment budget of Bt154 billion for several mixed-use projects at the location and surrounding areas.

The Port Authority of Thailand is planning a mixed-use project on 223 rai in Klong Toei, containing an office building, logistics and warehouse facilities, and a shopping mall. The Bt100-billion project is currently under study while negotiations have begun with the existing lessees on land transfer. The plan will be finalised this year with joint development with private developers as an option.

Central Pattana, property arm of the Chirathivat family, has teamed up with Dusit Thani Group to re-develop the Dusit Thani Hotel at the junction of Rama IV and Silom roads, after winning a 30-year renewal contract on the site from the Crown Property Bureau.

A mixed-used project worth Bt36.7 billion is planned, comprising a residential condominium, office premises, retail facilities in addition to the hotel.

Pace Development Corp is developing a 53-storey luxury condominium project, Nimit Langsuan. Construction of the Bt7.5-billion property will be completed next year.

Meanwhile, the Athakravi Group, developer of the Manorom building on Rama IV road is completing the construction of a Bt2-billion community mall nearby.

Other condominium projects launched in the area since the beginning of 2014 include the Condolette Pixel developed by Pruksa Real Estate, The Portrail Rama IV-Sukhumvit 38 by Krung Thai Land Development, Land & House’s The Room Rama IV , the Aspire Rama IV of AP (Thailand), and Ananda Development’s Bt6.5-billion Ideo Q. These projects have a total market value of over Bt50 billion.

Aliwassa Pathnadabutr, managing director of CB Richard Ellis (Thailand), said Rama IV Road is a new destination for commercial and residential properties with three major plots of land being developed and projects due for completion between now and 2025.

It will be a new commercial and residential landmark in Bangkok, she added.

Amid the aggressive investments, land prices on Rama IV road have been increasing by an average of 8.9 per cent a year since 2015, said Ananda Development Plc’s chief executive officer Chanond Reuangkritiya.

The average sales price of condominium units on Rama IV road has now risen to Bt250,000 per square metre. The location has a total supply of 2,430 units as of the first quarter of this year with up to 84 per cent sold, he said.

A survey by Baania,com shows there are 21 office buildings with total space of 530,000 square metres within a radius of 800 metres from Rama IV road. Rentals of these commercial properties average Bt525 per square metre.

The location also saw the launches of 115 condominium projects with 29,700 units. Construction of 74 of these projects with a total of 14,100 units are due for completion before 2012.

Development of the other 41 projects with a total of 5,600 units, are still under way.